On Bloomberg this morning, Lord and Taylor’s CEO said they took a contrarian approach towards Black Friday and the forward season by adding more inventory while competitors continue to cut and limit inventory. Like these guys or not, this actually makes a lot of sense to me. Mark my words, come 1Q, we’ll see our fair share of companies blaming weak sales on inventory limitations. Perhaps the perennially-underperforming L&T is left out of the mix this time around. The SIGMA set-up below is pretty astounding. The sales/inventory spread has gone vertical. A play on higher inventory is a binary outcome from here. GMROI will be feast or famine.
He also said November comps were trending as well as October comps as they expect low double digit comps like in October.